There's never been a better time to pick up an REO (bank-owned home) in Mesa and other Phoenix East Valley cities.   The East Valley offers two regional airports, several college campuses (including Arizona State), modern shopping malls, theatres and sports complexes, plus a super freeway system that makes commuting quick and easy. Today, bank-owned homes are priced aggressively for a quick sale.  Most homes need work, from cosmetics like paint and carpet to replacing roof, appliances or air conditioner.   My clients enjoy shopping online because I can provide them with video and photos of the home's interior and the neighborhood.   There is something for every buyer today.  And whether you are an investor looking for homes to fix and flip, or you are looking for your first home, opportunity knocks!  

When buying distressed properties be sure to protect your interest by choosing to use a Buyer's Agent.   All homes listed in Arizona Regional MLS system assure you that there is never a fee to you for my services as your Buyer's Representative; and your best interest is always at the top of my mind!      Use Audry Wolff for your next purchase  -  Call now 480-244-8398 - I'm ready to be your Buyer's Representative! 

8 years local experience

 

Buying bank-owned properties
There is a lot of interest in buying bank-owned properties (REO's) these days. In fact, buying a property that has already gone through the short-sale and foreclosure stages is a much better option for buyers who need to close quickly.   Offers typically get a response within a few days rather than 6-8 weeks.  The downside is that the property has some flaws.   If it didn't, it would have already sold.   So buyer beware, do your due diligence homework.  

 What is REO?
REO stands for “Real Estate Owned”.  These are properties that have gone through foreclosure and are now owned by the bank or mortgage company.  This is not the same as a property up for foreclosure auction.  When buying a property during a foreclosure auction sale, you must pay at least the loan balance plus any accrued interest, legal and other fees accumulated during the foreclosure process.  You must also be prepared to pay with cash in hand.  And on top of all that, you’ll receive the property 100% “as is”.  That could include existing liens and even current occupants that need to be evicted.  A REO, by contrast, is a much “cleaner” and attractive transaction.  The REO property was not sold during the foreclosure auction.  The bank now owns it.  The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.  CAVEAT:  REO’s are sold "AS-IS".  You will not receive a sellers' disclosure statement with a history of defects and repairs.Is it a bargain?
Don't assume that all REOs are bargains and an opportunity for easy money.  Cautious buyers know, even though the Lender-Owner is anxious to sell it quickly, they are also strongly motivated to sell the property as close to market value as possible.  And since an REO in the neighborhood brings down the price of surrounding homes, you may just find a well-maintained home for nearly the same price.  A seasoned Realtor® will research home sales and guide you as to the home's true value in today's market.  There are definitely some bargains with money making potential and saavy buyers profit from bank foreclosures.  But there are also many REO’s that are not good buys and not likely to turn a profit.  When considering an REO purchase, figure the time and cost of any repairs or remodeling needed to prepare the house for occupancy.  Even if you do the work yourself, what is your time worth?  Don't forget to estimate your holding costs, including loan payments, taxes, insurance, utilities, etc., during your holding period.    Pre Foreclosures - Short Sales
Because of rapid decline in home values since 2006, many homes in Arizona are being offered with a short sale contingency.   In a short sale, the homeowner has applied to their lender for a reduction in the loan payoff amount due to a hardship and because the home's value has declined to a point where the owner can't afford to pay the remainder when the sale proceeds are short. Homeowners who are over-leveraged and need to sell their home way below what they paid for it are better positioned to negotiate a short sale with their lender if they start the discussion before they are actually in default.  If the house is not sold quickly or if the owner doesn't act fast enough to redeem themselves, the house will be foreclosed on and lost.  In addition to losing any equity, the owners credit is ruined for about 3 years.  Since the lender incurs additional expenses in a foreclosure, it makes good sense to take a smaller loss with a short sale. Pragmatic lenders realize a short sale can be a win/win situation for all parties since the lender can save on legal and court costs, the new buyer gets a better price & the seller will not suffer as severely as they might with a foreclosure.   CAVEAT:  Short sales are not for every buyer.   It is a lengthy process, you must be flexible with your move-in date, and typically the homes are still sold in As-Is condition.  Ask your Realtor® to research the property to determine if a short sale is feasible.How Do I Purchase REO/Bank-owned Properties?
The Lender uses a local listing agent to market their REO properties through the local MLS system and welcomes Buyers'Agents to show and sell the properties.  Before making your offer, ask your Realtor® to find out as much as possible about the property's status and the process for submitting offers, as each Lender has different requirements.  Lenders sell REO properties “AS-IS”, so be sure to include an inspection contingency in your offer with sufficient time to check for hidden damage. Reserve the right to terminate the offer if upon inspection the property requires too much work.   Your offer will be strong if you include documentation of your ability to pay, such as a pre-approval letter from a lender, or proof of funds in the case of a cash offer.   Lenders do not accept offers that are contingent on the sale of another property.  Since there may be other offerors, submit your "best and final" offer upfront.   The process may involve a committee decision, so be patient and give yourself plenty of time.

Information in this site deemed reliable but not guaranteed for Mesa Real Estate , Gilbert Real Estate , Chandler Real Estate , Tempe Real Estate , Scottsdale Real Estate , Fountain Hills Real Estate , Queen Creek Real Estate, San Tan Valley Real Estate, Mesa Condos, Mesa Townhomes, Active Adult Communities , Gated Communities , Master Planned Communities , Golf Homes ,  Luxury Homes ,  1 Acre Homesites  , Maricopa County Real Estate. HUD Homes, Foreclosures, Short Sale, Bank-owned, REO, MLS multiple listing service data is provided by Arizona Regional MLS, a Phoenix MLS service. This website covers MLS residential or commercial property in golf course and active adult communities, gated communities, planned communities, and PUD communities.  Sign up for automated searches at get email notification. Use MLS Data to assist you in buying or selling 1031 exchange homes or other real estate.   Shop for homes in  these neighborhoods: Alta Mesa , Villages of Eastridge , Red Mountain Ranch , Power Ranch , Val Vista Lakes , Camelot Country Club Estates , Las Sendas , Mountain Bridge,Boulder Mountain, Augusta Ranch , Parkwood Ranch , Apache Wells , Arizona Golf Resort , Barclay Village , Desert Sands , Dreamland Villa , Fountain of the Sun , Leisure World , Red Mountain Villas , Sunland Springs , Trilogy at Power Ranch , and Verde Groves .

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